UK Food & Grocery Sector Report summary
April 2021
Period covered: Period covered: 28 February – 03 April 2021
Food sales growth fell by 0.00% in March, year-on-year, against an unprecedented level of demand a year ago when sales growth rose by a record high 14.5%. Resultantly, growth slipped below the three month and 12-month averages.
Kantar said that consumers made 117 million fewer trips to the supermarket this month compared with the March trading period in 2020.
Sales shifted to the online channel at record pace. Some 600,000 new households shopped online during March 2020. This sharp uplift in demand caught some retailers off guard, despite having sophisticated online operations
In March, online Food sales growth rose by 0.00%, despite the 20.9% rise a year ago, with online sales accounting for 0.00% of overall food retail sales growth.
Sales growth was supported by easing lockdown restrictions with the re-introduction of the ‘Rule of Six’ coinciding with Easter Bank Holiday weekend and warmer weather, meaning households took the opportunity to host friends and families in gardens boosting the sale of BBQ foods.
Google trends data suggests than in the final week of March, searches for ‘BBQ’ rose by 259% on a year ago.
Households made 13 million more shopping trips to supermarkets in March than in the previous month.
Notably, this shift back to physical stores was predominantly driven by older consumers, with shopping trips rising by 6.8% within the 65yrs+ age group, more than twice the national rate. This cohort have been largely vaccinated.
Early analysis from the Coffer CGA Business Tracker (monitors sales for the UK Pub and Restaurant sector) suggests that during the first week of reopening, the majority of sites remained closed due to a lack of outdoor space. Resultantly, total sales growth fell by 57% compared with the equivalent week in April 2019. The further easing of restrictions in the hospitality sector is likely to have a greater impact on the grocery sector from May onwards.
Limited impact from hospitality reopening next month
Source: Coffer CGA Business Tracker
